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Strategies & Market Trends : Selling Puts: Have Cash Will Travel

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To: David Lind who wrote (837)1/21/2000 4:22:00 PM
From: Tom K.  Read Replies (1) of 1235
 
...possibilities of early assignment.....

I write a fair number of PUTs each month and after several years, I've never had an early assignment. But that doesn't mean it can't happen. In the marketplace, what can happen eventually will. If the thought of this strikes fear in you, than you may want to rethink the arena you're entering. Remember, the people that operate here are, like you, trying to turn a profit.... and most do it for a living (are professionals). No need to fear them, just go slowly at first and be prepared.

As far as repairing, if you don't want to own the stock, I'd suggest waiting until the time premium is minimum before taking repair action. I would not recommend shorting the stock.... that is very risky. But, that's my opinion.

Good luck.

Tom
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